I need some help with requirement 3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need some help with requirement 3.

Transcribed Image Text:CHAPTER 7: EMPLOYEE EARNINGS AND DEDUCTIONS
313
LO 1,2, 3, 4, 5
PROBLEM 7-2A Highridge Homes has the following payroll information for the week
ended February 21:
*.
Earnings at
End of
Daily Time
Federal
Previous
Pay
Income
Name
Week
W
F
Rate
Tax
Arthur, P.
7,800.00
8.
8.
8.
8.
8.
45.00
226.78
Bills, D.
2,060.00
8.
8.
8
8.
8.
12.50
26.00
Carney, W.
2,085.00
8
8.
8.
8.
8.
12.95
27.00
Dorn, J.
748.00
8.
8.
22.00
11.00
Edgar, L.
2,687.00
8.
8.
8.
8.
8.
15.00
37.00
Fitzwilson, G.
4,150.00
8
8.
8.
8.
8.
23.00
125.00
Taxable earnings for Social Security are based on the first $118,500. Taxable earnings for
Medicare are based on all earnings. Taxable earnings for federal and state unemployment
are based on the first $7,000. Employees are paid time-and-a-half for work in excess of
40 hours week. Round amounts to the nearest penny.
per
Check Figure
Net amount, $4,133.33
Required
1. Complete the payroll register. The Social Security tax rate is 6.2 percent, and the
Medicare tax rate is 1.45 percent. Begin payroll checks with No. 2080.
2. Prepare a general journal entry to record the payroll. The firm's general ledger
contains a Wages Expense account and a Wages Payable account.
3. Assuming that the firm has transferred funds from its regular bank account to its
special payroll bank account and that this entry has been made, prepare a general
journal entry to record the payment of wages.
LO 1, 2, 3, 4, 5
d o half for hours worked in
CHAPTER ASSIGNMENTS
8.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education